The contract involved the archived records of patients of three hospitals of the CHU de Québec (Hôpital de l’enfant-Jésus, Hôpital Saint-François D’assise and the CHUL)
10 June 2020 17h53
Updated at 19h48
Contract scanning is terminated illegally: the CHU de Québec must pay $ 1.6 Million to the Group in TACT
The superior Court condemned the CHU of Québec to pay more than $ 1.6 million to the Group in TACT for having illegally terminated the contract of digitization of patient records that the company had obtained in August 2015.
The contract, which was archived records of patients of three hospitals of the CHU de Québec (Hôpital de l’enfant-Jésus, Hôpital Saint-François D’assise and the CHUL), accounted for approximately 98 million images to be scanned, for a total amounting to nearly$3.6 Million.
In February 2016, just a few weeks after the Group TACT had commenced its work, the CHU de Québec has unilaterally terminated the contract, alleging the non-observance by the company of its own planning and the risk that it does not reach the contractual maturity date, provided. The institution also referred to the deficiencies as to the quality of the scanned images, summarized in the decision handed down on June 8 by judge Bernard Tremblay.
The Group TACTFULLY challenged the termination by suing the CHU de Québec, and in him claiming damages of approximately$ 2 Million, including the loss of profits that the company expected to achieve with the contract and other financial damages as a result of the termination.
The CHU de Québec, for its part, argued that they have acted lawfully and complied with the contractual provisions applicable to such termination, claiming to have grounds that allowed him to do so, reports the judge Tremblay.
The establishment has even responded with a counter-action in damage valued at over$ 1.9 Million including a penalty every day for the delay of the company to deliver boxes and boxes of documents scanned and additional costs “arising from the completion of the scan-contracted to another company with a unit price higher,” wrote the magistrate.
The CHU de Québec also wanted to be compensated for losses that he attributed to the wrongful conduct of the Group in TACT.
The superior Court rejected the grounds of termination of the contract relied on by the CHU de Québec and concluded that it had acted illegally in the cancellation.
The Court will assess at a little more than$ 1.6 Million the amount of financial damage suffered by the Group in TACT, which adds an amount of$ 100,000 representing the performance guarantee that the company has paid at the CHU de Québec, but it is appropriate without right reason of the illegality of the termination of the contract.
Of this amount, amounting to a little over$ 1.7 Million, the Court subtracted the sum of close to 90 500$ that the Group TACT must at the CHU de Québec. This amount represents the penalty daily (under-estimate) tied to the delays in the delivery of boxes of records and a sum paid in excess by the institution to the company. The damages to be paid by the CHU de Québec to the Group TACT amounted therefore to approximately$1.6 Million.
“The CHU de Québec-Université Laval takes note of the decision of the court and will proceed to its detailed analysis. As a result, we do not intend to comment on the decision”, said Wednesday to the Sun a spokesperson of the institution, Lindsay Jacques-Dubé.